Westway Company pays Suzie Chan $3,090 per week. Assume Social Security is 6.2% on $142,800 and 1.45% for Medicare.

By the end of week 52, how much did Westway deduct for Suzie's Social Security and Medicare for the year?

Note: Round your answers to the nearest cent.

What state and federal unemployment taxes does Westway pay on Suzie's yearly salary? The state unemployment rate is 5.1% and the federal unemployment tax is 0.6% on the first $7,000.

Note: Enter your answers as whole numbers.

To determine the total amount Westway Company deducts for Suzie Chan's Social Security and Medicare for the year, let's break down the calculations step by step.

### Step 1: Calculate Suzie's annual salary
Suzie is paid $3,090 per week. There are 52 weeks in a year.
\[ \text{Annual Salary} = 3,090 \times 52 = 160,680 \]

### Step 2: Calculate the Social Security deduction
The Social Security rate is 6.2% on the first $142,800.
Since Suzie's annual salary exceeds $142,800, the maximum Social Security deduction is:
\[ \text{Social Security Deduction} = 142,800 \times 0.062 = 8,853.60 \]

### Step 3: Calculate the Medicare deduction
The Medicare rate is 1.45% on her entire salary.
\[ \text{Medicare Deduction} = 160,680 \times 0.0145 = 2,329.86 \]

### Step 4: Calculate total deductions for Social Security and Medicare
\[ \text{Total Deductions} = 8,853.60 + 2,329.86 = 11,183.46 \]

So, the total amount Westway deducted for Suzie's Social Security and Medicare for the year is **$11,183.46**.

### Unemployment Taxes

### Step 5: Calculate the state unemployment tax
The state unemployment tax rate is 5.1% on the first $7,000 of her annual salary.
\[ \text{State Unemployment Tax} = 7,000 \times 0.051 = 357 \]

### Step 6: Calculate the federal unemployment tax
The federal unemployment tax rate is 0.6% on the first $7,000 of her annual salary.
\[ \text{Federal Unemployment Tax} = 7,000 \times 0.006 = 42 \]

### Summary of Unemployment Taxes
- State Unemployment Tax: **$357**
- Federal Unemployment Tax: **$42**

### Final Answers
1. **Social Security Deduction:** $8,853.60
2. **Medicare Deduction:** $2,329.86
3. **Total Social Security and Medicare Deduction:** $11,183.46
4. **State Unemployment Tax:** $357
5. **Federal Unemployment Tax:** $42

Would you like more details or have any questions?

Here are five questions you might consider next:
1. How are Social Security and Medicare rates determined?
2. What is the difference between gross and net salary?
3. How do different states' unemployment rates compare?
4. What are the caps for Social Security and Medicare deductions?
5. How does overtime affect payroll taxes?

**Tip:** Always double-check your calculations for accuracy, especially when dealing with percentages and multiple deductions.

Learn how to calculate Social Security, Medicare, state, and federal unemployment taxes for an employee's yearly salary. Understand the formulas and rates used for deductions in payroll calculations. Suitable for professionals and students interested in payroll accounting.

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